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Weekly UpdatesScaling back one's workforce may sometimes seem unavoidable in today's economy, but there are alternatives and advice to consider before doing so, according to several speakers at a recent Sudbury event.
At a breakfast held by the Greater Sudbury Chamber of Commerce in early March, various presenters outlined to attendees the options and opportunities available to employers and employees alike.
"It's a delicate balance of managing workforce reduction against your costs and needs," says Andre Dumais, manager of corporate services with Bestech. "We've had to look at some reductions at our business, and it's definitely something you struggle with."
If cutbacks are looming as a possibility, employers should consider the potential use of Service Canada's work-sharing program, says Glenn Budgell, program officer with Service Canada.
This program allows employers to reduce the work week, while Employment Insurance (EI) benefits are paid to the eligible workers for the hours they're not working.
These agreements can span six to 52 weeks with anywhere from 20-60 per cent reduction in weekly hours.
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This allows employees to remain employed and be compensated for days when no work is available, while employers are able to keep their staff and avoid expensive rehiring and retraining costs, Budgell says..
Although the work-sharing program is available for employers whose need to reduce their normal level of business is temporary and beyond their control, it is not about helping to retain seasonal workers during slow seasons.
Should the situation require layoffs or termination, however, employers need to be mindful of certain legal realities, says Brian Gatien, president of Gatien Human Resources Law and chair of the Greater Sudbury Chamber of Commerce.
While there exists some general confusion as to whether seniority plays a legal role in who can or cannot be dismissed, Gatien says that there are no statutory obligations dictating that seniority should be a factor. Outside of a unionized environment, employers may choose who ever they wish to stay or leave.
The only thing that requires consideration in this instance is the certainty that the decision to terminate a particular employees isn't based in some form of discrimination, such as age, race, religion, creed, or colour.
"Sometimes, choosing the best employee may mean choosing the youngest employee, or choosing the oldest employee, and you just want to make sure that age is not a factor, so you're looking at things like productivity, fit with corporate culture, and all those things that ensure your decision is not based on discriminative grounds."
The treatment of an employee upon their termination is also important, as poor treatment could open up the company to damages, he warns.
What's more, negative treatment of outgoing staff can have an equally negative impact on remaining workers, says Liana Fabbro Wisniewski, regional manager of Northern Ontario for career management firm KWA Partners.
"How downsized staff is treated directly affects the morale of those who are not downsized," she says.
To avoid these kinds of situations, it is crucial to map out a series of pre-determined guidelines for the process once the decision to terminate an employee has been made.
As a result of the heightened emotions that are sure to emerge from both corners, she suggests planning in advance what needs to be said, and to avoid deviating from that plan.
"You don't want to be rambling and negotiating, and you don't want it to turn into a performance appraisal. Make a script and stick to it."
The location for the discussion is also important, as the manager or employer must be able to control the conversation, which should remain short and clearly outline departure details and support opportunities.
If layoffs are to occur on a grander scale, however, then employers should probably meet with representatives from Service Canada beforehand, says Louise Morin, a citizen service specialist with Service Canada.
If 25 employees or more are affected, Service Canada will set up an information session, typically in conjunction with the Ministry of Training, Colleges and Universities, as well as Sudbury Vocational Resource Centre. This session, which can be held on-site, is also accompanied by an EI application intake. In particularly large layoffs, the meeting will be set up at a local post-secondary school instead.
If the number is lower than 25, Service Canada will instead provide informational packages for employers to distribute to the affected workers.
"It is important to understand the linkages between the three groups that are represented here," says Gatien. "Service Canada provides that backdrop that can assist you with easing through this without having to go through the kinds of things you'd have to hire me and Liana for."
By NICK STEWART
Northern Ontario Business
www.servicecanada.gc.ca
www.kwapartners.com
www.gatienlaw.com
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